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China Economy Resilient

China Economy ResilientChina Economy Resilient

A burst of Chinese data over the next few weeks is expected to show the world’s second-biggest economy cooled further in October as policy makers harden efforts to reduce financial risks and foster long term sustainable growth, Reuters reported. That strategy was amplified at the recently-concluded Communist Party Congress by Chinese President Xi Jinping, who set the tone for policy by emphasizing quality over quantity in boosting economic growth and pledging to win the war on pollution. While the government splurged on infrastructure projects, keeping fiscal policy fairly loose and stoking surprisingly strong growth through the year, authorities have also ramped up efforts to reduce China’s years-long addiction to debt. “We expect growth to slow in October,” said Wendy Chen, an economist for Nomura in Shanghai. Chen expects the gradual slowdown to extend through to the end of the year as pollution curbs hit factory output and weaker property and infrastructure spending cool investment growth. Indeed, growth in factory output is seen slowing to 6.3% year-on-year in October from September’s 6.6%, according to a Reuters poll of 32 economists.

 

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